China’s Huaxin plans share placement

China’s Huaxin plans share placement
Published: 16 March 2009

China’s Huaxin Cement said it plans to raise up to CNY4bn(US$585m) through a private placement of domestically listed A shares.

Huaxin said it will issue up to 200 million shares to as many as 10 current shareholders at no less than CNY20.73 each, compared with Friday’s closing price of 22.73 yuan.

The capital raising will help fund domestic cement projects, which will require an estimated CNY5.27bn in investment.

Huaxin said the expansion plan, which will increase its annual production capacity by 15.94Mt of cement and 13.08Mt of clinker, would help it to solidify its market share and improve its profitability.